When average variable cost is at its minimum, it is equal to the marginal cost of production at that ...

When average variable cost is at its minimum, it is equal to the marginal cost of production at that level of output.
  Indicate whether the statement is true or false

QUESTION 2

Which of the following looks at the demand side of the market to explain some of the observed international trade patterns?
 a. The theory of consumer preferences
  b. The factor abundance theory
  c. The product life cycle theory
  d. The Ricardian model
  e. The human skills approach

QUESTION 3

A perfectly competitive firm charges a price which is greater than its marginal cost.
 a. True
  b. False
  Indicate whether the statement is true or false

QUESTION 4

A profit-maximizing monopolist will choose to operate along the inelastic portion of its demand curve.
 a. True
  b. False
  Indicate whether the statement is true or false

QUESTION 5

The theory that explains the shift in the production of color TV sets from the United States to Japan and Taiwan is called the _____ theory.
 a. productivity difference
  b. factor abundance
  c. product life cycle
  d. preference
  e. human skills

QUESTION 6

The downward-sloping portion of the marginal cost curve is the only portion that matters in production.
  Indicate whether the statement is true or false

QUESTION 7

The marginal revenue curve of a firm coincides with the average revenue curve under perfect competition.
 a. True
  b. False
  Indicate whether the statement is true or false